After a few hours of the announcement of further cuts in the production of iPhone 5C, more dire news is coming from Foxconn. Apple’s partner has decided to cease production of iPhone 5C and will only focus on the iPhone 5S, claimed DigiTimes.
Although, the source isn’t always reliable, but the rumor puts Apple in a far more serious situation as its current supply of 5C handsets is insufficient to meet user demand, and if it’s true then this shutdown will put a huge dent on the supply chain. Now, Pegatron will only one to fulfill the demand of the colorful smartphone.
In a late announcement, Apple decided to reduce the load of iPhone 5C to 80,000 units per day to 8,000 for Pegatron and Foxconn. Now, the cut would even be greater as the historical partner of Cupertino will focus solely on the flagship, iPhone 5S; however, Apple still thinks that 80,000 units daily assembled by Pegatron are enough.
Since the start of device manufacturing, Apple has split orders in a 70% to 30% proportion for a Pegatron and Foxconn, the latter company is already mainly engaged in the manufacture of other devices like laptops and desktops for the Cupertino. With the reduction, Foxconn Electronics will stop using its factory in Zhengzhou, Northern China for the iPhone 5C production and turn it solely for iPhone 5S.
However, the design of iPhone 5C has been judged positively, but the plastic successor of the iPhone 5 hasn’t taken hold on the public because of the price and the difference in performance with other specimens, and it isn’t considered as profitable and smart purchase.
Buying an iPhone 5C without contract costs more than $550 from official dealers, when the customers can bag the top of the range, iPhone 5S for only $100 more. In addition, operators and shops still have iPhone 5 with large residual stocks, which is virtually identical to iPhone 5C; so why choose the polycarbonate version?
Now, Apple seems to have only two options, either reduce the price or decrease the production to keep this phone in business line.